Square Mile: Q1 fund manager sentiment

Savage rotation

clock • 4 min read
Jake Moeller, Paul Angell and Alex Farlow of Square Mile

Jake Moeller, Paul Angell and Alex Farlow of Square Mile

Rising inflation, rising interest rates, weak supply chains, rising energy prices and the dreadful situation in Ukraine have created a near perfect storm for markets.

These factors, combined with a savage rotation within investment styles have led to one of the toughest market backdrops for a long time.  Q1 2022 witnessed significant divergence in equity market performance: UK equities were up slightly by 0.5%; UK smaller companies were down 11.4%; Europe was down 7.4%.  Fixed income provided little protection with UK government bonds and sterling corporate bonds down 7.2% and 6.6% respectively.  This divergence was also evident in styles. Global growth was down 7%, while global value was up 2%.  In the IA Global sector, there was a 44.1% differenc...

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